Tech Rebounds Ahead of Meta, Tesla Earnings — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- S&P 500 and Nasdaq Composite rallied Monday as AI and chip stocks rebounded, with the iShares Semiconductor ETF (SOXX) snapping a nine-day losing streak
- iShares MSCI South Korea ETF (EWY) surged 4% on Monday, driven by SK Hynix and Samsung Electronics, after steep prior-week declines
- Meta Platforms and Tesla are set to report earnings this week, a critical test for the AI trade’s earnings expectations, with SpaceX also reporting after the bell Tuesday
- 85% of 47 S&P 500 companies that reported Q3 results beat expectations, contributing to a blended earnings growth rate of 29% so far
- Ron Albahary of LNW warned of an 'earnings-expectation-potential bubble' in the AI sector, expecting a more discriminating market that separates winners from overleveraged neocloud platforms
- Sameer Samana of Wells Fargo Investment Institute downgraded tech due to overly optimistic expectations, saying recent selling hasn’t fully corrected the imbalance ahead of midterm-related AI politicization
Why it matters: With the S&P 500 down nearly 2% last week and Nasdaq off 4.5%, this week’s earnings from Meta, Tesla, and SpaceX will determine whether AI-driven gains are backed by fundamentals or speculative overreach. A failure to meet sky-high expectations risks accelerating a broader tech correction, especially as debt-laden neocloud platforms face scrutiny.
Ask SkimNews
